Shoals Technologies Reports Strong 2025 Growth Amid Rising Cost Pressures
Event summary
- Shoals Technologies reported Q4 2025 revenue of $148.3M, up 39% YoY, driven by utility-scale solar demand.
- Full-year 2025 revenue reached $475.3M, a 19% increase from 2024.
- Record backlog of $747.6M, up 18% YoY, reflects strong order pipeline.
- Gross margin declined to 31.6% in Q4 due to material costs and tariffs.
- 2026 revenue guidance set at $560M–$600M, with adjusted EBITDA of $110M–$130M.
The big picture
Shoals Technologies' strong 2025 performance reflects robust demand in the utility-scale solar market, but rising costs and tariffs pose challenges. The company's strategic expansion into battery energy storage and new markets positions it as a multi-category leader, though execution risks remain. The 2026 outlook suggests cautious optimism amid shifting political and economic conditions.
What we're watching
- Cost Management
- Whether Shoals can mitigate rising material costs and tariffs to sustain margins.
- Market Demand
- The pace at which utility-scale solar demand will grow amid political volatility.
- Execution Risk
- How effectively Shoals can scale operations to meet its 2026 revenue targets.
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